What is Liability Insurance?
Liability insurance is insurance which protects an individual or business from claims initiated by another party. It covers risk like injury to third party, damages to property, malpractice or negligence. Intentional damage and contractual liabilities are not covered under this policy.
Types of Liability Insurance
Professional Liability
Is initiated to cover professionals who operate their own businesses. This protects them against financial losses from lawsuits filed against them by their clients. Professionals have broad knowledge in there field. So if they fail to perform their duties well they can be held responsible by law.This is also called Errors and Omissions.
Workmen’s Compensation/Employer Liability
It is a mandatory form of liability insurance coverage that all businesses must carry. This policy is planned to protect the employee. It is actually protection for the employer in case of injury, job related illness, or other damages for which the employee might sue or file legal case against the company.
Directors & Officers Liability
In case of mis-statements in prospectus, errors in accounts, mismanagement of fund or any other mistakes law shouldn’t make the entire company liable. Hence this policy is planned to cover the director and officers position.
Public Liability
Public liability insurance protects the business in case of injury or death to public and damage to property. This policy is very important for industrialist. Public liability insurace is also known as liability insurance , general liability insurance, or indemnity insurance.
Product Liability
Product liability insurance protects the business from claims related to liability for losses or injury or death to the buyers, etc. It protect business which manufacture public related goods like medicines, cold-drinks, packet food etc.
